Singapore ranked 6th most expensive warehouse location globally

Rents of prime warehouse surged 18.2% to US$18.57 per sq ft per annum.

Colliers International noted that in 1H 2011, Singapore moved up a notch to rank as the sixth most expensive warehouse location in the world, displacing Oslo. Singapore ranked seventh in the previous two half-yearly surveys conducted in 2010.

Rents of prime warehouse (industrial space of 20,000 sq ft or more, with up to 15 per cent office space) rose 18.2 per cent to US$18.57 per sq ft per annum (or by 12.4 per cent to S$1.90 per sq ft per month in local currency terms) in the six-month period from January 2011 to June 2011, underpinned by expansionary occupier demand on the back of a healthy economy.

It was surprising that in spite of the earthquake and subsequent tsunami in northern Japan, Tokyo’s industrial leasing markets suffered little adverse effect. Tokyo remained the most expensive warehouse location in the world at US$22.81 per sq ft per annum (¥1,650.00 JPY per sq m per month) with no changes to rentals (in local currency terms) within the six-month period ending June 2011.